PERTH (miningweekly.com) – Gold miner Saracen Mineral Holdings has secured A$150-million in financing with an international banking syndicate, positioning the ASX-listed firm for future growth.
Saracen told shareholders on Friday that the facility included an initial A$45-million loan facility, a A$5-million bank guarantee and a gold hedging facility. The facility was for an initial three-year term and included an ‘evergreen’ arrangement with a yearly review date whereby the term can be extended for an additional year each year, to maintain a three-year tenure.
The facility also features an accordion provision, under which Saracen can request up to an additional A$105-million capacity under the corporate loan, bringing the total loan to A$150-million, with the approval of the syndicate members.
The accordion provides flexibility to access additional funding for future growth activities, without the carrying cost of paying undrawn commitment fees, said Saracen MD Raleigh Finlayson.
“The funds from the facility, combined with current cash on hand and internal cash generation, will be available to fund future growth opportunities as they arise,” he added.
Furthermore, existing hedging will be novated across to the new syndicate on a proportional basis, and will be on similar prices and delivery schedule to the current hedge programme.
Edited by: Creamer Media Reporter
EMAIL THIS ARTICLE SAVE THIS ARTICLE
To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
